Statutory Sick Pay amount SSP and PAYE/NI refund

Claiming sickness benefit through PAYE and SSP refund.

What normally applies:

Statutory Sick Pay SSP is not payable for one, two or three days off work.

Your employee becomes sick and notifies you within seven days.
They may use SC2 form Statutory Sick Pay form (SSP form) Employee's statement of sickness.
You are not paying the normal salary or wage during sickness.
It is advisable that terms for sick pay are included in a written contract of employment.
up to 5th April 2012:
They have earned an average of more than £102 per week in their employment with you.
from 6th April 2012:
They have earned an average of more than £107 per week in their employment with you.
This is the National Insurance Lower Earnings Limit NI LEL
They remain sick for four or more calendar days i.e. including any days when they were not due to work.
They remain sick for four working days.
Statutory Sick Pay is payable on the next normal pay day.
For the fourth and subsequent working days i.e the first three working days are not payable.
All subsequent days are payable.
up to 5th April 2012:
The payment rate is £16.32 per day.
So if they are sick for only five working days pay is 2 days x £16.32 =£32.64.
If they are sick for ten working days Statutory Sick Pay SSP is 7 days x £16.32 =£114.24.
from 6th April 2012:
The payment rate is £17.17 per day.
So if they are sick for only five working days pay is 2 days x £17.17 =£ 34.34.
If they are sick for ten working days Statutory Sick Pay SSP is 7 days x £17.17 =£120.19.
They return to work and you stop paying Statutory Sick Pay SSP and start paying regular wages or salary.

After seven calendar days the employee should provide a Statement of Fitness for Work from their doctor.
After that it is for the employer to determine what evidence needs to be produced for continuing periods of sickness.
It is advisable that these terms are included in a written contract of employment.

Recovering statutory sick pay - NI refund
You can get back SSP based on the 'Percentage Threshold Scheme' (PTS) test:
For each payroll month - which are all pay days between 6th to 5th of the following month.
What is your class 1 national insurance payable in the payroll month?
Calculate 13% of this.
What is the total amount of Statutory Sick Pay paid in that payroll month to all employees?
Deduct the 13% of the class 1 national insurance payable from the amount of Statutory Sick Pay paid and deduct this figure (which could be zero) from your PAYE/NI payment.
Repeat the calculation for any subsequent months.
Where we are preparing your payroll the recovery of SSP calculations are already made within the service; automatically recovering SSP as you pay your PAYE/NI contributions.
Using your own purchased payroll software, the calculations may be included.

How long
If the period of Statutory Sick Pay exceeds 28 weeks you stop paying Statutory Sick Pay and refer them to state benefits Employment and Support Allowance ESA by completing a form SSP1 Statutory Sick Pay form and an employee's claim for benefit.
Where there are breaks in the claims which are less than eight weeks the 28 week count continues.
If the 28 weeks are not accumulated during a period of three years, under the less than eight weeks test, Statutory Sick Pay stops and state benefits start by completing a form SSP1 Statutory Sick Pay form and an employee's claim for benefit.

There are a number of more complex scenarios and we suggest that you contact us or view HMRC guidance at www.hmrc.gov.uk/paye/employees/statutory-pay/ssp-overview.htm

This summary relates only to payment of Statutory Sick Pay SSP. There are wider issues of employment law which may apply.